Guinn says budget will include state worker raises

Gov. Kenny Guinn said Wednesday he is building a budget that will meet the state's needs for the next two years without raising taxes and still provide up to $90 million to raise salaries and benefits for state workers.

He made the statement a day after more than 140 state workers gathered on the Capitol grounds, saying their pay has fallen dramatically behind that of other public employees in the state.

The key, he said, is getting the Legislature to give him more freedom to run state agencies without getting prior permission for every change in staffing or programs.

Guinn told legislative leaders Wednesday the budget office's best projections show there will be $455 million in new revenues available for the 2002-3 budget cycle - about 6 percent growth a year. He said almost all of that will be eaten up by education, Medicaid and prison caseloads.

What's left, he said, should be about $90 million, and Guinn said the top priority for that cash is salary and benefits for state workers.

Guinn promised that his final budget proposal would include a specific package designed to stop the exodus of experienced employees to other public agencies with better pay and benefits.

While Guinn wouldn't commit to any specific increase at this point, that amount of money would cover the $75 million it would take to provide 5 percent each year for state workers.

"The first thing we're looking at is what to do to equalize the salaries of state employees," he said.

The bulk of the $455 million in new money goes to four places Guinn said must be top priorities. K-12 public schools will need $85 million more simply to handle up to 6 percent more students a year. Guinn said Medicaid caseloads are expected to jump 9 percent a year, requiring $190 million more over the next two years and the prison population by up to 6 percent for $50 million more.

The university system, he said, will require about $70 million more to meet growth that could hit 7 percent a year.

That leaves just $60 million. Guinn said savings from changes in how agencies operate generated by his review of state government should boost the total to $90 million.

To do it, he said, the rest of state government will be held to the same total budget as this year - which means absorbing any rising costs, such as rent and step increases for workers.

In addition to Guinn's agencies, the Legislature, the judiciary and other constitutional officers must also hold the line on spending, he said.

Guinn said they can do it "with more flexibility from the legislative branch."

Guinn said with a Legislature that meets for 120 days every two years, it's too difficult to keep up with changing needs. Because of this, he wants his agencies to have the power to change staffing and operations. He also wants his office to be able to move money and staff between agencies if necessary.

"When they're in session, we can change things in an hour if necessary," he said. "But what do you do in the other year and nine months they're not here?"

He said state agencies can do more with the same amount of money, if allowed.

"That is predicated on doing business in Nevada in a different fashion," he said.

Also on the list is an estimated $150 million in "one shot" money - surplus cash from the current budget or revenue that will only appear once because of some special circumstance.

Guinn says a third of that should go into an education fund to pay for textbooks, technology and programs such as tutoring and teacher training.

He said another $50 million should go into a health care fund for senior prescriptions, long-term care and other needs.

The remaining $50 million would be dedicated to buildings, equipment and technology.

He said if lawmakers will give him the flexibility to make changes in how state agencies do business, the state can take care of business without tax increases.

"I'm not going to look favorably on any tax," he said. "I'm building this budget without any tax increases."